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Refinance

Drop the rate, drop the mortgage insurance, or take cash out.

A conventional refinance replaces your current loan with a Fannie Mae or Freddie Mac loan. Use it to lower the payment, shorten the term, get rid of FHA mortgage insurance, or pull cash out up to 80% of the home's value.

Cash-outUp to 80% of value
Minimum credit620
Mortgage insuranceNone at 80% or less
AppraisalSometimes waived
See if I qualifyCall (800) 511-3330
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Who it's for

Is the Conventional refinance right for you?

  • FHA borrowers with 20% equity who want the mortgage insurance gone
  • Owners with a rate well above today's market
  • Homeowners funding a renovation, tuition or debt payoff with cash-out
  • Anyone moving from a 30-year to a 15- or 20-year term
How it works

Three steps from here to closing.

Break-even check

We compare your current loan to the new one, costs included.

Application and appraisal

Full-doc application, appraisal ordered (or waived by the automated underwriter).

Close and fund

Sign, then a three-day rescission period on a primary residence before the loan funds.

What you'll need

Requirements at a glance.

  • Credit score of 620 or higher
  • Loan-to-value up to 97% for rate-and-term, 80% for cash-out
  • Two years of income history
  • Debt-to-income ratio generally up to 45%
  • Six months of ownership for cash-out (the property seasoning rule)
Straight talk

The upside, and what to weigh.

Why people choose it

  • No mortgage insurance at 80% loan-to-value or less
  • Cash-out is usually the cheapest way to borrow a large amount
  • Closing costs can be financed

Things to consider

  • Cash-out rates run slightly higher than rate-and-term
  • Extending back to 30 years can cost more in total interest
Common questions

Asked on almost every first call.

How much cash can I take out?

Up to 80% of the appraised value on a primary residence, less on second homes and rentals.

Will I need an appraisal?

Often. Fannie Mae and Freddie Mac sometimes grant an appraisal waiver for lower loan-to-value refinances.

How long does it take?

Two to four weeks from application to funding.